Olympus fraud leads to banker arrest

27 December 2012

Alleged accounting fraud at Olympus Corp has resulted in the arrest of a former Singapore banker.

Chan Ming Fon, who once served as a bank vice-president, has been accused of helping liquidate hundreds of millions of dollars as part of the scandal, Asian Legal Business reports.

Camera and medical equipment maker Olympus has admitted to concealing considerable investment losses by using improper accounting methods, with the practice first beginning in the 1990s.

According to US court papers, former banker Chan received $10 million from Olympus for his involvement.

George Venizelos, FBI assistant director-in-charge, said: "The defendant had a direct role in the secret liquidation of hundreds of millions of dollars of Olympus investments."

Mr Venizelos explained Mr Fon attempted to hide his involvement in the episode by telling auditors that, even years after liquidation, the investments were still in existence - a campaign of lying that lasted for around six years in total.

By Gary Cooper

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